Bill Would Ease Rules For Phone Companies

TALLAHASSEE — Local telephone companies could earn higher profits and operate with less regulation under a telecommunications bill passed Monday by a Senate committee.

Legislation approved by the Economic, Professional and Utility Regulation Committee would allow the Public Service Commission to shift away from the current rate-based regulation to less-restrictive methods.

Public Counsel Jack Shreve, who represents consumers in cases before the PSC, was unhappy with the bill, telling the panel that it could result in phone companies making unlimited profits. The PSC now sets the rate of return the companies are allowed to earn.

The bill reflects an agreement reached last week by the phone, cable-TV and pay-phone industries over the rewrite of Florida's telecommunications law. Under sunset review, the Legislature is required to review laws and decide whether to re-enact them.

Lobbyists for the various telecommunications industries cut the deal after the House indicated earlier this month that it would delay the sunset review until 1992. By then, Congress is expected to decide on major issues such as whether local phone companies can operate cable TV services in the same area where they offer phone service.

Committee chairwoman Toni Jennings, R-Orlando, said the bill contains adequate safeguards to protect the public from being gouged by phone companies.

But some lawmakers and lobbyists said the industry agreement could crumble if changes are made in the legislation. The House has yet to introduce its telecommunications bill.